For many years, Turkey has been one of the favorite holiday destinations for tourists from Germany. However, due to rising inflation, exchange rate pressure and high service prices, German tourists' interest in Turkey has decreased. There is a decrease of up to 10 percent in reservations made to the southern coasts.

According to data from the German travel analysis company Travel Data + Analytics, reservations made from Germany to the southern coasts of Turkey this summer decreased by 10 percent compared to last year. This decline particularly affects destinations around Antalya, Muğla and its surroundings.

Rising Prices Scare Away Tourists

According to Deutsche Welle, data from the Turkish Statistical Institute (TÜİK) also confirms the decline. In June 2025, the prices of hotels, restaurants and similar services increased by approximately 36 percent compared to the same period last year. The price increase was not limited to coastal cities, but also affected major cities such as Istanbul.

The Contraction in Tourism Affects Sectors in a Chain

Katrin Pasvantis, foreign trade expert from Germany Trade & Invest (GTAI), pointed out that tourism is of strategic importance for Turkey and said, "Tourism not only provides foreign exchange inflow, but also supports sectors such as food and beverage, transportation and retail."

Weak Lira Is No Longer an Advantage

In the past, the low value of the Turkish Lira against the Euro made Turkey attractive. However, this advantage has lost its effect recently. President Recep Tayyip Erdoğan's low interest rate policy triggered high inflation in the country. The Central Bank, on the other hand, raised the interest rate to 46 percent in order to control this pressure.

While the official inflation rate was announced as 35 percent in June, the independent inflation monitoring group ENAG claimed that this figure was twice as high. Many hotels and businesses seeking stability against foreign currency have started to fix their prices on a Euro basis. For this reason, Turkey is moving away from being a "cheap holiday" destination.

Political Developments Erode Trust

In addition to economic fluctuations, political developments such as the arrest of Istanbul Metropolitan Municipality Mayor Ekrem İmamoğlu caused unease among investors and tourists. Commerzbank currency strategist Antje Praefcke emphasized that the Central Bank is trying to support the Lira with its foreign exchange reserves, but there are question marks about the adequacy of the reserve levels.

Investments Suspended, Tourist Numbers at Risk

GTAI expert Pasvantis stated that companies planning to invest in Turkey from Germany are cautiously monitoring developments. “Companies are looking for predictability. However, the current conditions are delaying investment decisions,” she said. On the other hand, it is expected that the geopolitical risks in the Middle East will continue to suppress regional tourism.

This table marks a critical turning point for Turkish tourism not only for the German market, but also for other European markets.

Source: Sözcü